I had python 2.5 installed, along with pypn for 2.5. I've uninstalled python 2.5 and upgraded to 2.6. When I installed the newest PN, the installer complained about not finding the python25.dll file. After the installer is done, I opened PN and the scripts menu works, so it seems like python is working as expected.
Just a heads up, not sure if it's my weird config that's breaking things.